India eyes 600 MT steel capacity by 2047, National Steel Policy due soon
Synopsis
India is doubling its long-term steel ambition — from 300 MT by 2030 to 600 MT by 2047 — and a new National Steel Policy anchoring that target is weeks away from public release. With import curbs, green steel milestones, and support for smaller producers all on the table, the policy could reshape the competitive landscape of one of India's most strategically critical industries.
Key Takeaways
Steel Secretary Sandeep Poundrik confirmed the new National Steel Policy will be released for public consultation within approximately one week .
The policy sets a steelmaking capacity target of 600 million metric tonnes by 2047 , aligned with the Viksit Bharat vision.
India's current crude steelmaking capacity stands at approximately 222 MTPA , with an existing target of 300 MTPA by 2030 .
The policy will include measures to curb cheap steel imports via safeguard and anti-dumping duties , and will address competitiveness of smaller producers.
Finished steel consumption rose 7.8 per cent to 55.9 million tonnes during April–July , driven by infrastructure demand.
Steel exports surged 35 per cent to 2.29 million tonnes , with export value rising 29.4 per cent to ₹18,105.4 crore in the same period.
India is set to release its new National Steel Policy for public and stakeholder consultation within approximately a week, with the government targeting a steelmaking capacity of 600 million metric tonnes (MT) by 2047, Steel Secretary Sandeep Poundrik said on Tuesday, 29 September 2026. The policy is being framed around the Viksit Bharat vision and will set out production milestones for green steel, speciality steel, and stainless steel for both 2035 and 2047.
What the Policy Will Cover
Speaking to reporters in New Delhi, Poundrik said the revamped policy would include explicit measures to curb cheap and sub-standard steel imports, with trade instruments such as safeguard duties and anti-dumping duties among the tools being considered. The policy will also address the competitiveness of smaller steel producers, focusing on technology access and pricing support — a segment that has historically been squeezed between large integrated players and low-cost import competition.
Notably, this marks a significant step up from the existing target: India's crude steelmaking capacity currently stands at approximately 222 million tonnes per annum (MTPA), and the government had earlier committed to reaching 300 MTPA by 2030 under the previous National Steel Policy. The new target of 600 MT by 2047 essentially doubles that ambition over the longer horizon.
Sector Performance: Output and Consumption Up
Recent production data from the Ministry of Steel offers a broadly positive backdrop for the new policy. During April–July of the current financial year, finished steel production rose 4 per cent year-on-year to 54.3 million tonnes, up from 52.2 million tonnes in the same period a year earlier. Crude steel output climbed 2.6 per cent to 56.3 million tonnes from 54.9 million tonnes previously.
Finished steel consumption outpaced production growth, rising 7.8 per cent to 55.9 million tonnes from 51.9 million tonnes, driven by strong demand from infrastructure projects across highways, railways, and ports. This consumption uptick underscores the domestic appetite that any scaled-up production base will need to serve.
Steel Exports Surge 35 Per Cent
On the trade front, steel exports rose a sharp 35 per cent to 2.29 million tonnes during April–July, compared with 1.70 million tonnes in the year-ago period. In value terms, exports jumped 29.4 per cent to ₹18,105.4 crore. The divergence between volume growth (35%) and value growth (29.4%) suggests some pricing pressure in export markets — a dynamic the new import-control measures appear designed to address domestically as well.
Why This Matters for India's Industrial Trajectory
Steel is a bellwether for industrial and infrastructure ambition. A 600 MT target by 2047 would require sustained annual capacity additions at a scale India has not consistently achieved, making the policy's implementation architecture — financing, land, raw materials, and environmental clearances — as consequential as the headline target itself. The inclusion of green steel milestones also signals an attempt to align India's steel expansion with global decarbonisation timelines, ahead of potential carbon border adjustments from major trading partners.
Stakeholder consultations are expected to begin within a week, after which the policy is expected to be finalised and formally released.
Point of View
But India has a pattern of setting ambitious steel milestones and then falling behind on the structural prerequisites — land acquisition, coking coal security, environmental clearances, and grid-scale green energy for low-carbon production. The inclusion of green steel and speciality steel sub-targets for 2035 is the more significant signal: it suggests the government is aware that raw tonnage ambition, unmoored from decarbonisation, will face trade barriers in the EU and elsewhere. The real test of this policy will be whether the import-protection measures it proposes — safeguard and anti-dumping duties — are calibrated as a bridge for domestic capacity-building or become a permanent shield that insulates inefficiency. Smaller producers need technology access and capital, not just tariff cover.
NationPress
29 Sept 2026
Frequently Asked Questions
What is India's new National Steel Policy and when will it be released?
India's new National Steel Policy is a comprehensive framework targeting a steelmaking capacity of 600 million metric tonnes by 2047, aligned with the Viksit Bharat vision. Steel Secretary Sandeep Poundrik said on 29 September 2026 that it will be put out for public and stakeholder consultation within approximately one week.
How does the 600 MT target compare to India's current steel capacity?
India's crude steelmaking capacity currently stands at around 222 million tonnes per annum. The existing policy target was 300 MTPA by 2030; the new policy essentially doubles the long-term ambition by setting a 600 MT target for 2047.
What import protection measures does the new policy propose?
The proposed National Steel Policy includes trade measures such as safeguard duties and anti-dumping duties aimed at discouraging cheap and sub-standard steel imports. It also outlines steps to improve the competitiveness of smaller domestic steel producers on technology and pricing.
What does the new policy say about green steel and speciality steel?
The policy is expected to set production targets for green steel, speciality steel, and stainless steel for both 2035 and 2047, signalling an attempt to align India's capacity expansion with global decarbonisation trends and potential carbon border adjustment mechanisms from key export markets.
How has India's steel sector performed recently?
During April–July of the current financial year, finished steel production rose 4 per cent year-on-year to 54.3 million tonnes, while consumption grew a faster 7.8 per cent to 55.9 million tonnes, supported by infrastructure demand. Steel exports surged 35 per cent to 2.29 million tonnes, with export value up 29.4 per cent to ₹18,105.4 crore.
